Franchisors, Convince The Right Franchisees to Go for Multiple Locations

Many franchisors are seeking out multi-unit franchisees these days. There are many reasons for that; first of all, multi-unit franchising ensures a faster market penetration for the franchisor. Additionally, it saves the time and energy needed in searching for new, competent franchisees and then training them. With multi-unit franchisees, they act as mini-franchisor among the stores they own, reducing the need of the franchisor to watch over every issue! So, it’s natural that if you have a thriving franchise business under you, you will like to have more multi-unit franchisees buy a franchise. But before you go to the market, why not look into your present franchisees to see if anyone among them is interested in becoming a multi-store owner?
Here are some tips to help you convince such franchisees:
• First of all, go for franchisees that have a flourishing location. If that franchisee is happy with you, and if he or she is ambitious, then chances are, that he or she is already thinking about starting a franchise in another location!
• Go for franchisees that have experience in managing a large group of people. If he or she is proficient in leadership and administrative affairs, then a little confidence building and prodding from your part may help him or her in deciding to start another location.
• Offer discounts in franchise fees and other facilities. That will also make them want to buy a franchise in another location.
• Make them aware of the profit of having more locations opening in the market. Tell them that more units mean more publicity and better brand-name recognition. Everyone wants more business; so interested franchisees will also want their share of the market.
• Another point that may attract a single-store franchisee to start multi-unit franchising is the buying capacity of a large chain. When the chain has a larger number of units, the franchisor can negotiate better purchase terms from the suppliers and distributors. The franchisees will also gain from that. Hence, they will be attracted to multi-site franchising easily.
• One point that scares a single-unit operator from turning into multi-unit operator is “cannibalism”. It happens when two locations are so close to one another that they eat into each others profit. To dispel that fear, make sure you do a detailed market survey regarding your customer pool and give protected territory (if possible) to the franchisees in the franchise agreement.
Contact brandEXPANSION’s franchise development team to learn more.